Autonomous Railcar Startup Closes $14.4M Funding Round

Self-propelled, electric-railcar startup Intramotev recently landed $14.4 million in an oversubscribed series A funding round.

The St. Louis-based manufacturer plans to use the investment to continue deploying its railcar systems to customers. Intramotev sells two products: TugVolt, a kit that can retrofit/upfit existing railcars to become battery-electric, self-propelled units and ReVolt, a conversion kit that allows railcars to capture waste energy through regenerative braking.

Intramotev is the only manufacturer of its kind to have units actively generating revenue with clients, according to an announcement. It currently has three ReVolt cars in service on Iron Senergy’s 17-mile private rail line in Pennsylvania, which runs from its Cumberland Coal Mine in Waynesburg to its Alicia Harbor Facility, in Alicia. The company plans to deploy other cars at a calcium mine owned by Carmeuse Americas later this year.

"A lot of suppliers promise to make your job easier, but Intramotev actually delivers," said Jon Brown, vice president of business development and capital at Iron Senergy. "Intramotev's team worked relentlessly to ensure the proper implementation of their technology at our mine, and we couldn't be more pleased with the results. Five thousand miles into our experience with their ReVolt train, we're thrilled to continue working with Intramotev to accelerate innovation in mining."

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Intramotev’s near-term plans focus on deployment at other mines, as well as ports, plants and other “captive” areas not connected to the larger U.S. rail network, which would require regulatory approval from the Federal Railroad Administration. 

The company aims to take advantage of a key deficiency in the current rail system, which leaves hundreds of thousands of railcars sitting idle as they wait for locomotives to deliver them the last miles of their journeys. Ultimately, it wants to see its cars in use not just in the final stages of a railcar’s journey but along the entire trip.

"Utilizing the most advanced battery-electric technology and other proprietary tools, we look to apply the packetization of the internet model to freight logistics, initially on short, captive routes and remove the actual distance, then rapidly expanding to the full network of 140,000 miles of existing U.S. track without additional infrastructure,” Intramotev CEO Tim Luchini said in 2023. “We envision a future where freight can move itself without waiting for a locomotive, making the system more efficient and environmentally friendly."

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The $14.4 million funding round was led by Flybridge Capital Partners and Alpaca VC. Advantage Capital, Aera VC, Band VC, Cantos, Cathcart Rail, Collide Capital and Decisive Point. Idealab Arizona also participated.

"This funding positions us to continue deploying our technology to customers across the U.S. and abroad to unlock a new era of growth for the rail industry," Luchini said. "We've heard from customers again and again that they want freight solutions that don't compromise on efficiency, speed or flexibility. TugVolt and ReVolt deliver just that."